Medical Office Building with Excess
For Sale
$2,000,000
1608 24th Ave, Yakima, WA 98902
Double net leased medical office building with RPM Rehab, cell tower lease, and excess development land fronting S 24th Ave.
Property Size14,456 SF
Price / SF$138.35
Days on Market386
Property Features for 1608 24th Ave
General Information
Standard status
Active
Size
14,456 SF
Property subtype
General Commercial
Occupancy
82%
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$10,560
Amenities
Central Air
3
Built Up
115870.0, 115870.0
Building Details
Year Built
1971
Tenancy
Single
Listing Agency:
HIRSCHI REALTORS
(940) 224-2626
Listed By:
JODY BRANNON · License #17047
(940) 224-2626
Source:
Xome
Added: Jul 22, 2025
Changed: Aug 11
Last Checked: Aug 11 at 4:39AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of HIRSCHI REALTORS
Investment Insights
Based on property information with market context.
This offering includes a double net leased medical office building along with a cell tower lease and excess commercial development land. The primary lease is with RPM Rehab, Inc., a 9-location physical therapy clinic that has been in the building since approximately 2014. RPM entered into a new 5-year lease in January of 2025 for approximately 82% of the total building area, occupying approximately 11,846 SF. RPM is responsible for 100% of the common area maintenance charges attributable to the property, including taxes and insurance, excluding maintenance of the excess land area.
The remaining portion of the building includes vacant office space and a garage/storage area, plus an unfinished second-story apartment totaling approximately 2,610 SF. The property also includes excess land fronting S 24th Ave estimated at approximately 30,000 SF, described as prime for development.
The remaining portion of the building includes vacant office space and a garage/storage area, plus an unfinished second-story apartment totaling approximately 2,610 SF. The property also includes excess land fronting S 24th Ave estimated at approximately 30,000 SF, described as prime for development.
Key Highlights
- Double net leased medical office building with RPM Rehab, Inc as the primary tenant (9‑location physical therapy clinic).
- RPM has occupied the building since approximately 2014 and signed a new 5‑year lease in January 2025 for approximately 82% of the total building.
- RPM occupies approximately 11,846 SF of the building and is responsible for 100% of common area maintenance charges attributable to the property, including taxes and insurance.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$154,123
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.71%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,082,460
$3.1M
Cap Rate 7%
$2,201,757
$2.2M
Cap Rate 9%
$1,712,478
$1.7M
Market Conditions
NOI Build-Up for 14,456 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$275.8K $19.08/SF
− Vacancy
−$18.9K −$1.31/SF
EGI
$256.9K $17.77/SF
− OpEx
−$102.7K −$7.11/SF
NOI
$154.1K $10.66/SF
Area
Yakima County, WA
Vacancy
6.87%
Lease Rate
$19.08 /SF/Yr
Expense Ratio
40.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,082,460
Cap Rate 7%
$2,201,757
Cap Rate 9%
$1,712,478
Alternative Uses
Best Use
Healthcare Medical
$2.20M
$1.93M – $2.57M
NOI $154,123 @ 7.0% cap · market cap 7.71%
Second Best
Office B
$2.20M
$1.92M – $2.56M
NOI $153,881 @ 7.0% cap · market cap 7.69%
Theoretical Best
Office A
$2.94M
$2.57M – $3.42M
NOI $205,497 @ 7.0% cap · market cap 10.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
82%
Occupancy
Single-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
393
Businesses Nearby
Explore this area
Business Placement
Demographics for 98902, WA
47,589
Population
17,723
Households
2.7
Avg Household Size
33
Median Age
19%
College-Educated
78%
High-School Grad
9.3 sq mi
ZIP Area
5,117
Density / Sq Mi
$60,050
Median Household Income
$36,900
Median Earnings
$1,045
Median Rent
$237,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Rehabilitation center - Double net leased medical office building with RPM Rehab, cell tower lease, and excess development land fronting S 24th Ave.
Where is this rehabilitation center located?
The property is located at 1608 24th Ave Yakima, WA.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Double net leased medical office building with RPM Rehab, Inc as the primary tenant (9‑location physical therapy clinic).; RPM has occupied the building since approximately 2014 and signed a new 5‑year lease in January 2025 for approximately 82% of the total building.; RPM occupies approximately 11,846 SF of the building and is responsible for 100% of common area maintenance charges attributable to the property, including taxes and insurance.
